The Australian insurance industry has developed a new General Insurance Code of Practice which is now being implemented across the country.

The new Code includes benchmarks for dealing with claims and complaints, and helping consumers get a better understanding of insurance products.

CommInsure is proud to be a signatory to the Code.

To read the Code, or get more information, visit www.codeofpractice.com.au

In 1995 general insurers created Australia's first General Insurance Industry Code of Practice.

On 18 July 2005 the industry launched its new Code of Practice. The new Code is set to raise service standards, improve claims and complaints handling and help people better understand how general insurance works.

Developed in concert with consumers, business and the insurance industry, the new code is the general insurance industry's commitment to be open, fair and honest in all its dealings with customers.

The new Code enshrines the industry's promise to improve customer service across all types of general insurance - for both individual consumers and business customers.

The new Code goes above and beyond current regulation as many of the standards in the existing code were absorbed into the Financial Services Reform Act (FSRA).

Signatories to the new Code are responsible for ensuring that not only their employees but also their Authorised Representatives and their Service Providers meet or exceed the standard set out in the new code.

When customers provide information to a Code signatory, they can be confident that only relevant information will be used to assess application for insurance.

If insurers are unable to provide cover, they will give reasons for the decision and they will refer customers to another insurer, the Financial Ombudsman or the National Insurance Brokers Association (NIBA) for further information about insurance options.

Responding to claims is what insurance is all about. Australian general insurers pay an average of $55 million in claims each business day and the new Code is designed to speed up the claims process.

If a customer makes an insurance claim and has provided all the relevant information and no further investigation is required, the insurer will make a decision and notify the customer within ten business days.

The Code recognises that when people are in dire need as a result of loss or damage, insurers should respond by fast tracking claims or making advance payments.

When a Code signatory selects and directly authorises a repairer, they accept responsibility for the quality of repairs and materials and agree to handle any complaints about the repairs.

The new Code is compassionate - it recognises that when natural disasters strike, the insurance industry needs to be flexible and understanding in helping affected communities.

The new Code includes a cooling off period for people making claims following a natural disaster and it codifies the role of the Insurance Disaster Response Organisation in providing an industry wide response to natural disasters.

People need information about insurance to make informed decisions. The new Code requires insurers to make available up-to-date, clear, concise information available to help the community understand how general insurance works.

The Code is also written in plain language so that it is easy to read and understand.

If a customer is unhappy with the service they receive or a decision about an application or claim, Code signatories are required to inform them of how to make a complaint.

The new Code also has clear and agreed timeframes for responding to complaints.

The industry is committed to the benchmarks in the new Code and welcomes the scrutiny provided by the Financial Ombudsman Service which will monitor each signatory's compliance with the new Code.

In the event of a Code breach, the signatory can be required to undertake remedial action or may have sanctions imposed upon them.

• What is a Code of Practice?

  A Code of Practice sets out agreed standards and responsibilities for companies and organisations, or for whole industries.

• Why do we need a new General Insurance Code of Practice?

  Introduced in 1995 to widespread praise, the original general insurance Code of Practice was the first industry Code in Australia to link voluntary standards and dispute resolution, but many of those standards are now covered by government regulation. The new Code was developed to go beyond current regulation and to reflect changing community expectation and attitudes towards insurance.

• Who was involved in developing the new Code?

  The new Code was developed with consumers, business and the insurance industry. It involved a three month public consultation process to give people the opportunity to have their say on what they would like in the new Code, and included an independent review of all the submissions received.

• What types of insurance are covered by the new Code?

  Nearly all types of general insurance, from house insurance and travel insurance to multi-million dollar business insurance are included in the Code. It's also the first time that the Code has extended to cover both business policies and personal insurance.

  The only type of general insurance that are not included are reinsurance (insurance for insurers) and insurance that has specific rules under government statue, like Compulsory Third Party insurance (CTP), Workers' Compensation, Marine insurance and Medical Indemnity insurance. Life Insurance and Health Insurance are also not included.

• Will I understand the Code?

  The Code is written in plain language and has been divided up into sections that reflect the experiences consumers have when they interact with an insurance company.

• Where can I find a full copy of the Code?

  The full Code is available at www.codeofpractice.com.au

• How will the Code be monitored?

  Each company that has signed up will be monitored by the Financial Ombudsman Service to make sure they are meeting the standard ion the Code. If a company falls short, it can be required to take action to fix the problem and sanctions may be imposed.

• Who will adopt the standards set out in the new Code?

  All members of the general insurance industry are encouraged to adopt the standards set out in the new Code. It is not limited to insurers.

  The Insurance Council of Australia's members represent more than 90% of the general insurance market in Australia, and adopting the standards in the new Code is a condition of membership.

• How will the new Code be implemented?

  To make sure that the standards are met or exceeded, each signatory will implement the standard in the way that is most appropriate for their business.